The Euskaltel Board of Directors to put the appointment of Francisco Arteche as CEO of the Group to the General Meeting

Previously at the world leading software company, Microsoft, and with a 20-year extensive track record in executive positions at top technology multinationals, Francisco Arteche is the most appropriate professional to successfully head Eusktaltel as it addresses the new challenges of the digital economy that will mark the future evolution of the telecommunications sector.

The Euskaltel Board of Directors has also agreed to recommend that the General Meeting of Shareholders approves two new board members, Elisabetta Castiglioni and Miguel Ángel Lujua, to the General Meeting of Shareholders.

Bilbao, 24 May 2016.During its meeting held this morning, the Euskaltel Board of Directors unanimously agreed to put the appointment of Francisco Arteche as the new CEO of the Group to the General Meeting of Shareholders.

The Euskaltel Board of Directors believes Francisco Arteche to be the most appropriate professional to successfully head Euskaltel at it addresses the new challenges of the digital economy that will mark the future of the sector and the transformation from telecommunications operator to digital services operator and driver of the digital economy.

Previously at the world leading software company, Microsoft, and with a 20-year extensive track record in executive positions at top technology multinationals, Francisco Arteche is particularly noted for his strategic vision regarding the evolution of market consumption of new technologies, his leadership capacity, and his team management style, based on people's professional development.

Francisco Arteche, born in San Sebastián 51 years ago, graduated in Industrial Engineering from the University of Navarra in San Sebastián and has an MBA from the IESE Business School in Barcelona.

With a long and prolific career behind him, he has held executive posts in the technology for 20 years and he spent the last twelve years at Microsoft, the world leader in applications and software. Prior to joining Euskaltel, he was the General Manager of the Microsoft Ibérica Consumer Channel Group, a company which he joined as Director of the Entertainment & Devices Division for Central and Southern Europe and, subsequently, for the whole of Western Europe.

Previously, he had been the General Manager of Electronic Arts (EA Software) for Spain and Portugal, where he worked for seven years.

Francisco is a member of the AMETIC (Association of Electronics, Information and Communications Technologies, Telecommunications and Digital Content Companies) Executive Board, member of the ICA (Institute of Corporate Directors) and has been a member of the Board of ISFE (Interactive Software Federation of Europe), along with being the executive sponsor within Microsoft on the AECOC Board (the largest Spanish Association of Manufacturers and Distributors) and Chair of the ADESE (Spanish Association of Software Manufacturers and Developers) sectoral association.

Furthermore, the Board of Directors agreed to terminate the contractual relationship with the current General Manager of the Company, Fernando Ojeda, and expressly thanked him for his work at the company during the last 3 years.

Appointment of new board members

In addition, the Board of Directors unanimously agreed to recommend that the General meeting of Shareholders appoint two new board members ? Elisabetta Castiglioni and Miguel Ángel Lujua -, to replace Bridget Cosgrave and Richard David Alden, respectively, who had resigned from the post.

The new board members are independent experts noted for their experience and knowledge of the telecommunications and technologies sector and of people management, respectively.

Elisabetta Castiglioni, who will replace Bridget Cosgrave, has extensive experience in the telecommunications and technologies sector. After building her professional career in the world of telecommunications both at operators (MCI Worldcom) and manufacturers (Siemens), she is currently focusing on advising and consulting technological and media companies of the ilk of Telekom Austria, BBC, ITV, New York Times, Rai, BSkyB, Cox. Elisabetta was Global Media, IT Solutions and Services Executive Director at Seimens, and Director of Strategy and Access and of Marketing Internet Products in Europe, Middle East and Africa at MCI Worldcom. She has been a board member of Telekom Austria for the last five years.

Miguel Ángel Lujua, who will replace Richard David Alden, is an expert in people management. He has been Chair of the Basque Business Confederation (Confebask), a member of the Executive Committee and of the Management Board of the Spanish Confederation of Employers' Organisations (CEOE) and deputy chairman of Innobasque. Miguel Ángel also belonged to the Management Board of the Bizkaia Business Confederation (Cebek) and has been Chair of the Basque Foundation for Excellence (Euskalit). He is currently Managing Director of the IMQ Group. His career started at the Nervacero Human Resources Department. He subsequently held the same post at AHV-Aceralia, now Arcelor, and was Mutualia General Manager until he joined the IMQ Group.

The Board of Directors thanks the two outgoing board members for their work in the Company and their involvement with the project.

After the meeting of the General Meeting of Shareholders which will consider this new structure, 50% of the members of the Euskaltel Board of Directors will be independent ? 5 members out of 10 -, and 30% women ? 3 out of 10-. Euskaltel is thus confirming its commitment to comply with the highest international standards of Good Governance.

Both the recommendation to appoint the new CEO and the two new members of the Board will be submitted to the next Ordinary General Meeting of Shareholders.